At the 2021 low yesterday of USD 1.3364, GBP was suffering from being besieged by the twin forces of a surge in US inflation strengthening the view of higher USD rates, plus the release of September UK economic growth of just 0.6%. Given that the Bank of England had nixed higher rates at their recent meeting, the market yesterday collectively concluded that GBP is going lower. As Margaret Thatcher used to say, you can’t buck the market, so GBP does indeed look set for a weaker end to 2021.
Readers who are suffering withdrawal symptoms from their holidays in Italy and its world class wines, might be interested to know that the junior version of Saffredi, a Super Tuscan, which is called Morellino di Scansano Riserva from Fattoria Le Pupille 2018 is available at £18.88 incl tax from Lay & Wheeler. Scored at 93 points this wine is mostly Sangiovese with a dash of Cabernet Sauvignon and is where the clever money should go since it is less than a quarter of the price of the Saffredi and scores almost as highly.
If you have not heard of this start up airline, it is rumoured that owner Indian billionaire Rakesh Jhunjhunwala is about to ink an order for 75 737 Max jets from Boeing thereby putting both a 1% fillip under Boeing’s share price as well as a corporate frown on the face of Air India that is struggling with an ageing fleet. The deal may be finalised this weekend at the Dubai Air Show where all the top brass of the aero industry are congregating.
At the age of 85 FW, the last leader under apartheid and a key player in the transition to democracy departed this world yesterday thereby marking the end of an era. Nelson Mandela recognised the positives in him and worked closely with him to deliver the end of apartheid and the birth of modern South Africa. USD/ZAR at 15.2375.
When the UK’s answer to the USA’s Bob Dylan, Donovan released this song this day in 1966 , legions of his hippy fans assumed it referred to the then somewhat overrated pastime of first drying and then smoking banana skins. For those tie dyed Afghan coated, patchouli scented relics still wondering about that, it can be confirmed that Mellow Yellow in fact referred to the fact that Donovan had succumbed to a particularly severe case of jaundice in 1966 which turned him a nasty shade of yellow. It is fair to say that both the song and Donovan have not aged well, but here it is:
I’m just mad about saffron
A-saffron’s mad about me
I’m-a just mad about saffron
She’s just mad about me
They call me mellow yellow (Quite rightly)
They call me mellow yellow (Quite rightly)
They call me mellow yellow
I’m just mad about fourteen
Fourteen’s mad about me
I’m-a just mad about-a fourteen
A-she’s just mad about me
They call me mellow yellow
They call me mellow yellow (Quite rightly)
They call me mellow yellow
Born-a high forever to fly
A-wind-a velocity nil
Born-a high forever to fly
If you want, your cup I will fill
They call me mellow yellow (Quite rightly)
They call me mellow yellow (Quite rightly)
They call me mellow yellow
So mellow yellow
Electrical banana
Is gonna be a sudden craze
Electrical banana
Is bound to be the very next phase
They call it mellow yellow (Quite rightly)
Have a Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
UK Wages Bank of England Governor Andrew Bailey yesterday warned of the pressure on wages that are threatening to lead to a wage price spiral as the effects of inflation on the cost of living together with the 12 consecutive interest rate rises that consumers have experienced. The market has not enjoyed the poor inflation […]
UK inflation – June hike worthy? Yesterday’s inflation data surprised markets. The data was released slightly ahead of European core trading hours. The lighter liquidity available at this time could have resulted in the short-term spike towards 1.2450 on cable and around half a cent to the mid-1.15s within GBPEUR. However, you could, and perhaps […]
International Monetary Fund With no sign of insouciance despite its 180 degree turn in a two month timeframe, the IMF yesterday reversed its downbeat if not disastrous forecasts for the UK and stated the UK is no longer heading for a recession and nor is it the weakest member of the G7 when it comes […]